Delayed Home Ownership Ambitions Pressure The American Home Rental Market

Image of home with for rent sign in the window
A home for rent in New Orleans: a commodity that is growing scarce in the U.S.

Apartment List is an American private company that specializes in apartment rentals. Because of its size, it’s in a position to gather broad statistics concerning rental accommodations in the U.S.

Rental housing has seen little building growth in the last decades. The shortage of rental housing has been exacerbated over the last decade in the wake of the 2008 mortgage debacle that chased hundreds of thousands of Americans out of owned homes.

Rising costs of home ownership in a country obsessed with that ‘American Dream’ have focused new attention and concern on rental housing, particularly for struggling middle class workers currently unable to climb aboard the ‘home ownership ladder.’

Apartment List’s interests are focused on expanding business in the rental market rather than the home ownership market. However its data gathering can shed useful light on the home ownership aspirations of current renters.

Apartment List surveyed the ownership ambitions of some 6,400 ‘millennial’ renters — an age group soon to surpass baby boomers as the largest in America.

The report: nearly 9 out of 10 millennials intend one day to own a home, but are faced with current conditions that make it difficult or impossible. Only 4 percent expect to buy a home in the next year, and nearly a third are looking 5 or more years down the road to fulfill their dreams of home ownership.

How do pocketbooks match ambitions? Nearly half of those surveyed have absolutely no money put aside for a down payment. Little more than 10% have saved $10,000 towards their dream home.

Read the full report here at apartment list.com:  2018 Millennial Homeownership Report: American Dream Delayed

Why should people everywhere be interested in this report?

Anecdotal evidence abounds in many countries about rising prices for scarce rental housing, as well as the unaffordability of home ownership. The Apartment List report adds some statistical weight to individual tales of woe.

As to Apartment List’s profit motives in providing rental accommodation, we’re happy to report that somebody at least cares to promote the interests of renters.

Will the ‘American Dream Delayed’ move towards the ‘American Dream Abandoned’?  If so, a growing acceptance of a permanent rental lifestyle can only result in a much greater demand for affordable rental accommodation.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.